For newcomers to Canada, finding a place to call home is one of the first major steps on the road to settling in. But the search for housing can be daunting, especially with the challenges of a competitive rental market, and the need to establish trust with landlords.
This guide offers tips and insights to help newcomers land their first rental in Canada confidently. And we’ve ran the tips by two of our team members who happen to be landlords:
Key Takeaways
- Canada’s rental market is very competitive. If you understand what landlords want to know, you can submit a better rental application.
- Landlords don’t really care about your credit score, they care if you can afford the rent or not. Build trust to succeed.
- References (in English or French) from previous landlords go a long way.
- Not ready to rent yet? Consider share accommodation instead. It’s usually more affordable and more flexible than committing to a lease.
Settle into life in Canada
Make sure you understand each of the points below, and you’ll be well placed to submit a winning rental application.
Understand What Landlords Are Looking For
Landlords want to know that you can reliably pay your rent and be a responsible tenant. But as a newcomer, proving this reliability can be tricky, especially if you don’t yet have a Canadian job or credit history. So, you’ll need to make a plan to overcome this hurdle.
Luckily, there’s something you can do to make a strong first impression and show your reliability: create a rental “portfolio”.
You can put together a portfolio for your potential landlord that includes:
- A brief cover letter explaining who you are, why you’re moving to Canada, and what you’re looking for in a rental.
- Your proof of income and employment.
- Bank statements and references (if available).
- Any relevant personal references that can speak to your character and reliability.
A rental portfolio not only demonstrates preparedness but also sets you apart from other applicants who may not have organized their information as effectively.
With this portfolio in hand, show up to your showings on time and dress neatly to really showcase that you’re a good candidate.
Many landlords are willing to work with newcomers. It’s essential to be proactive and transparent about your situation. If one landlord doesn’t accept your international documents, keep searching. Persistence often pays off.
Not Ready To Rent Yet?
If you’re not in a financial position to rent in Canada (yet), you’re not alone. Luckily, there’s a huge network of people living in Canada who are ready to share their home with you to help you keep down costs, build a community, and share housework and life admin.
Check out Sparrow, a trusted partner of Moving2Canada.
Affordable Rooms in Canada, Just For You
Quick Tips For Submitting A Better Rental Application
Gather Key Documents Ahead of Time
Having the right documents ready can speed up the application process and show you’re serious about the property. Most landlords will ask for proof of income, a credit report, references from previous landlords (if applicable), and government-issued identification.
Highlight Your Financial Stability
Many newcomers worry about a lack of Canadian credit history. To address this, consider providing pay stubs, an employment letter, or even bank statements from your home country to show financial reliability.
Write a Personal Introduction Letter
A short, thoughtful introduction can make a great impression. Share a little about yourself, your reasons for moving to Toronto, and what you’re looking for in a home. Personal touches help humanize your application in a competitive market.
Include References from Abroad
If you don’t have a Canadian rental history, offer references from previous landlords, employers, or other credible figures in your life. While Canadian references are preferred, positive references from abroad can still be valuable.
Have Your Funds Ready
In Canada, landlords generally require a security deposit of at least 50% of the first month’s rent up front. It’s a good idea to have these funds readily available, as a quick payment can sometimes be the deciding factor in securing a property, especially in competitive markets.
Some landlords may request both the first and last month’s rent as an additional form of security, so ensure you’re financially prepared. (Though, this isn’t legal in every province.) You may also need to open a Canadian bank account if your landlord requires payments in CAD.
Bonus Tip: Use Your Rent To Build a Canadian Credit Profile
Although it’s not an immediate requirement, building a Canadian credit profile will improve your rental prospects in the long term. A credit history helps future landlords see your financial reliability, making it easier to rent or even purchase a home later.
Signing up for a secured credit card or using a service like Borrowell, which provides free credit score tracking, can be a good start. Some banks offer specialized newcomer accounts that help you build credit while setting up your finances in Canada.
Report Your Rent -- Boost Your Credit Score
Show Proof of Employment
A letter from your employer can confirm your job stability and income level. If you’ve recently relocated, a copy of your job offer letter, combined with any proof of income, is often sufficient to assure landlords of your ability to meet rental obligations.
Consider Using a Guarantor
If your financial history is limited, having a guarantor with a solid credit history can make your application stronger. A guarantor is someone, like a family member or close friend, who agrees to take on the rental obligation if you cannot.
Be Timely and Responsive
In a competitive market, time is of the essence. Respond promptly to emails, calls, or requests for additional information. Landlords often move quickly, so demonstrating your reliability and quick communication can set you apart.
This applies to your references too. Let them know when you apply for a rental property and tell them to expect a call. Your references answering the phone can make a huge difference for potential landlords looking to fill a home quickly.
Be Flexible with Lease Terms
If possible, show flexibility with lease start dates or term lengths. Landlords may have a preferred move-in date or lease duration, and being open to their preferences can work in your favor.
Apply for Multiple Properties
Finally, to increase your odds, consider applying for multiple properties that fit your criteria. While this approach involves some extra work, it can help you avoid the disappointment of waiting too long on one option and missing out on others.
Are you ready to rent your first home in Canada?
Find here other resources about renting for newcomers:
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